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What Will Happen To Your Legacy? Estate Planning For Expatriates In Mallorca

How will your wealth be passed down to your children, grandchildren and other chosen heirs? How will they handle your legacy? Will it help give them long-term financial security? How much will they actually receive, and how much will go to the taxman?

Chancellor Philip Hammond delivered his Autumn Statement budget on 23rd November. The main change for expatriates appears to be that the taxing period for those who have left the UK and have a QROPS will be extended from five to ten years.

The new global automatic exchange of information regime went live in January 2016, and the first information exchange will take place next year. It is more important than ever to make sure your are correctly declaring your income and paying tax in the right country.

From January 2016, financial institutions in over 50 countries around the world began collecting information on their clients and their accounts. This data will be passed onto the clients’ country of residence in 2017. Cross-border taxation can get complex for expatriates, and it is important to make sure you are correctly declaring your income and paying tax in the right country.

Tax freedom day is the day each year when you finally stop working to pay tax to the government, and start earning money for yourself. If you are lucky enough to be retired you are still faced with tax on your savings, investments and pensions. Tax planning is an important part of protecting your wealth in retirement.

You need to be extra careful with your tax planning these days. Make sure it is up to date with all the various tax changes and is fully compliant. You also want to check that you are not paying more tax than necessary.

In a year’s time, tax authorities around Europe will have started receiving information on its taxpayers’ offshore assets and income, under the new global automatic exchange of information regime. The UK is already being handed details of hundreds of thousands of offshore accounts held in its Crown Dependencies and Overseas Territories.

All British expatriates need to understand how the UK Statutory Residence test applies to them. You may be living in another country, but if you are a recent arrival, or if you continue to spend time in the UK each year and retain property there, you need to be sure you know which country you are tax resident in.

You need to be extra careful with your tax planning these days. Make sure it is up to date with all the various tax changes and is fully compliant. You also want to check that you are not paying more tax than necessary.

Now that Brexit is imminent, should you have concerns about your pension security? We look at the key implications for the State Pension, defined contribution schemes and defined benefit or ‘final salary’ schemes.

It could be some time before we get clarity on how the UK will leave the EU and how their future relationship will evolve, but in the meantime we can take a look at how Brexit could affect your tax and estate planning in Portugal, as well as your investments and pensions.

It is important for British expatriates to review their estate planning after a move to Portugal. Key factors to consider are wills, Portugal and UK succession laws, Brussels IV, domicile and inheritance taxes.

It is not difficult to appreciate why so many people fall in love with France and consider making it their home. There are, however, some tax and financial essentials you need to plan for if you are to get the best out of living in France.